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Home Business Leaders

Anand Mahindra: India’s Potential to Challenge China’s Supply-Chain Dominance

Anand Mahindra, the Chairman of the Mahindra Group, believes that India has the potential to challenge China’s supply-chain dominance.

India CSR by India CSR
January 3, 2024
in Business Leaders
Reading Time: 5 mins read
Anand G. Mahindra, Chairman, Tech Mahindra

Anand G. Mahindra, Chairman, Tech Mahindra

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Anand Mahindra feels that the world needs India to become a reliable challenger to China’s supply-chain dominance, which will provide a great opportunity in 2024. Suspicions of China’s ambitions and post-Covid supply chain disruptions have also worked in India’s favor.


India is well-positioned to challenge China’s supply-chain dominance. The suspicions of China’s ambitions and post-COVID supply chain disruptions have worked in India’s favor, and the country has massively improved its logistics and supply chain capabilities.

India’s thrust on infrastructure is paying off, and the country has the cheapest manufacturing costs in the world. Geopolitical tensions with China are also pushing many manufacturers in India’s direction.

All these factors combined make India a potential contender to challenge China’s supply-chain dominance.

Anand Mahindra, the Chairman of the Mahindra Group, recently highlighted India’s potential to challenge China’s dominance in the supply-chain sector. He believes that India is within a pole-vaulting distance of being able to replace China as the factory to the world.

India’s Favorable Position

Mahindra cited several factors that position India as a potential contender to challenge China’s supply-chain dominance. India’s favorable position to challenge China’s supply-chain dominance is due to several factors.

Firstly, the suspicions of China’s ambitions and post-Covid supply chain disruptions have worked in India’s favor.

Secondly, India has massively improved its performance on the World Bank’s Logistic Performance Index, which is a measure of how well countries can connect to international markets.

Thirdly, India’s thrust on infrastructure is paying off.

The Indian government has been investing heavily in infrastructure, including roads, ports, and airports, which has helped to improve the country’s logistics and supply chain capabilities.

Fourthly, India has the cheapest manufacturing costs in the world, which makes it an attractive destination for companies looking to relocate their manufacturing operations.

Finally, geopolitical tensions with China are pushing many manufacturers in India’s direction.

Investment and Growth

Anand Mahindra believes that investment will flow into India in 2024, and growth in manufacturing and exports will help India challenge China’s supply-chain dominance.

He cited several factors that position India as a potential contender to challenge China’s supply-chain dominance. The suspicions of China’s ambitions and post-Covid supply chain disruptions have worked in India’s favor.

India has massively improved its performance on the World Bank’s Logistic Performance Index, and its thrust on infrastructure is paying off.

Mahindra believes that investment will flow into India in 2024, and growth in manufacturing and exports will help India challenge China’s supply-chain dominance. The Indian economy is growing at 7% when many countries are heading for recession.

Geopolitical tensions with China are pushing many manufacturers in India’s direction.

According to a recent news article, India can be a beneficiary of a geopolitical realignment and become the world’s counterbalance to China, whose dominance in the global supply chain network has proved to be a roadblock to growth since the start of Covid-19.

China controls one-fourth of the world’s semiconductor production and three-fourths of lithium-ion battery cell supply.

It also controls 96% of the world’s dry cargo, thus playing an important part in the global supply chain industry.

However, with tensions brewing between China and Taiwan and the ongoing threat of COVID-19 lockdowns in Chinese cities, companies are keen to adopt the ‘China+1’ strategy to de-risk themselves from the vagaries of China-led uncertainties.

Cheapest Manufacturing Costs

Economics also enters into it. India actually has the cheapest manufacturing costs in the world. It is not surprising that, of late, companies of the stature of Apple, Samsung, Boeing, and Toshiba have shifted a significant amount of their manufacturing activity to India.

According to a report by US News and World Report, India has been ranked as the nation with the cheapest manufacturing cost ahead of China and Vietnam.

The report evaluates 85 countries across 73 attributes, including adventure, agility, entrepreneurship, open for business, social purpose, and quality of life.

India has bagged the 31st position in the overall Best Countries ranking and featured at the 37th spot in the ‘Open for Business’ category. Under the ‘open for business’ sub-category, India has scored 100% when it comes to cheap manufacturing costs.

The Indian government has taken steps such as rolling out production-linked incentive schemes and reducing compliance burden with a view to make India a global manufacturing hub.

According to a recent news article, India’s manufacturing industry ended 2023 on a slightly shaky footing as factory growth decelerated to an eighteen-month low in December, pressured by a weaker rise in new orders and output.

However, India’s economy is growing at 7% when many countries are heading for recession. Geopolitical tensions with China are pushing many manufacturers in India’s direction.

(India CSR)


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